Ann Up 5% As Shareholder Argues For Sale
Ann (NYSE: ANN) gained more than five percent in pre-market activity after a one percent stakeholder went public with its desire to boost shareholder value.
The apparel retailing chain, which has seen flat or declining same-store sales recently, could be worth between $50 and $55 per share to a third-party acquirer, the investors said in a public letter to management.
Ann traded recently at $39.38, up 4.9 percent.
Engine Capital and the investment advising firm Red Alder said it "had no choice but to share our thoughts publicly" after recent meetings with management failed to obtain desired results.
Ann offered a brief response Monday saying that it "welcomes communications with its shareholders" and "will continue to take actions" to improve shareholder value and "position the company for growth and success."
Ann board members haven't acquired shares in at least 18 months while independent director James J. Burke Jr. and Chairman Ronald W. Hovsepian have drastically cut their stake, the investors said.
"These directors and the other directors who have been selling clearly cannot argue that $52.50 per share today undervalues the company," the investors said.
In March Golden Gate Capital acquired 9.5 percent of Ann shares and said it wouldn't seek management changes or a sale of the company.
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.